Default advice

[Munchkinreturns]

Hi

I am writing again as I cannot seem to log into my other CF account. I would really appreciate advice on the following. A joint account for an egg credit card went to a debt collection agency on the 10th of October. I did speak to the creditor two months ago to say I was having problems and that I will bring the account back to date in a few months and expalined that my partner had been very ill and in and out of hospital and I myself was freelancing and money was very tight and that I would make reduced payments. I made a payment two months ago with last one being in August and was about to make a double payment to bring the arrears back in linebut was informed that the debt had gone to collections direct. I spoke to egg again and said I can make a significant payment in November so they took the acccount back into egg but refused to remove the default. I checked and a default notice for the card was never recieved.

The problem is I am not the main account holder and it will effect the the main account holders credit rating. The main account holder is already in hospital in a different country so I did want to come up with a solution before putting more pressure.

I read on a website that if a default is settled within 120 days of a collection agency receiving the account it will not be recorded on the credit file. I want to know if this is true. I do not mind writing a letter to take full responsibilty. The collection agency offered me a settlement figure of £5,000 which I could pay off in three parts. the collections agency is called Cllections direct who are collecting on behalf of EGG

Please advise me as how I can prevent my error from effecting my partner's credit file. I can settle the account but need to make sure that if possible I can prevent a default being recorded against their name.

The account has been with the collection agaency a day as they said the account was 91 days over due but I did make a payment of £100 reduced payment in August and have copies of statement saying it was up to date on July 31st with an additional payment in August. The default was apparantly sent out in August.

I have read in the forum that the amount requested should not be part of the amount shown. I have checked the statements and there ar echarges included in the amount due.

Sorry for the long email but I would appreciate some help asap

[PaulyV]

bump anyone?

[Mistermind]

Is it really "Collections Direct" owned by NPower chasing you, or

Egg and Collect Direct (UK) ?

It is a matter of getting to know your opponent, checking up their form before dealing with them. You might like to send a polite Private Message to the opening poster of that thread to see if he has any more info unsuited for publication in the public domain.

Egg are famous for not sending out Default Notice but claiming to have done so. It would be impossible to prove they did not. It confers no benefit on Egg or CD UK to register a default against the cardholder. They only do it to encourage settlement of arrears, or better still full payment. Have you checked with Experian whether the Default has already been put on? If so, the damage has already been done.

The danger is that when you ring or write to CD UK you are likely to be dealing with low-level low-paid staff, and the left hand does not know what undertaking the right hand previously gave the debtor. So, essential to reach a high-up manager who is hopefully more responsible, better still if you can deal with Egg. Just as you have little confidence if CD will stand by their promises, on their side they do not know if you will.

If there is some way you could convince them you will do your best to settle asap (e.g. postdated cheques?), then the other side is more likely to ease up on their frantic pressure. Letters would stand a better chance to contact the higher-ups than phone calls. Try address your letter to The Company Secretary, CD UK, marked Private and Confidential.

It is a case of trying to ensure a clear agreement of tit for tat from both sides. All they want is money really.

Good luck.

[dbairduk]

if the card is re-opend i.e you can use it again would your credit file update?
How are you standing with egg... have you frozen the interest or continuing with your credit agreement?

[Munchkinreturns]

I sent a letter to CD UK saying that I requested a breakdown of charges and copy of CCA and also that I require in writing from them that if I settle the £6,000 they offered would show the default as satisfied by the creditor Egg and that will only deal with them if they contact me in writing. I also sent a copy to egg by registered post giving them 30 days to reply and also stating that I have every intention to make a payment but i want in writing that any payment made would be recorded on the credit file and that the default would show as satisfied. I recieved today a letter from CD uk that they will be sending a representitive around as I have not contacted them. I wrote back to them saying that I did contact them and had sent a letter by special dlivery and I have not had anything in writing and that if they send someone around I will call the police and report them to the OFT and financial ombudsman for harrasement and failing to provide information requested. I stated that I am legally entitled to recieve the information before making any payment.

I do not know what else to do except write to egg again as they say they have not received anything